Asked by Allyssa Wilson on May 04, 2024
Verified
Which of the following is not a prime cost?
A) plant janitor's wages
B) direct labor wages
C) machine operator wages
D) assembly line wages
Prime Cost
The combined direct costs of manufacturing a product, specifically direct materials and direct labor.
Plant Janitor's Wages
The compensation paid to janitorial staff responsible for cleaning and maintaining industrial or manufacturing facilities.
Direct Labor Wages
The compensation paid to employees who are directly involved in the production of goods or the provision of services.
- Identify the differences between prime costs and conversion costs in the context of manufacturing.
Verified Answer
JS
Jontavia SandersMay 06, 2024
Final Answer :
A
Explanation :
Plant janitor's wages are not directly involved in the production process and are considered an indirect cost. Direct labor wages, machine operator wages, and assembly line wages are all prime costs because they are directly involved in the production process.
Learning Objectives
- Identify the differences between prime costs and conversion costs in the context of manufacturing.